BEIJING, June 24 (Reuters) - China may have difficulty meeting its fiscal revenue target for 2014 due to a slowing economy and tax reform, the country’s finance minister said on Tuesday.
“For the rest of the year, as the downward pressure remains for the economy, and as China expands experiments to replace income tax with value-added tax, we expect difficulty achieving the public revenue target,” finance minister Lou Jiwei told a regular meeting of the Standing Committee of the National People’s Congress, China’s parliament.
Fiscal revenues rose 7.2 percent in May from the same month last year, slowing from a 9.2 percent rise in April. The ministry attributed the smaller annual increase in May to the slowdown in the economy and falling property transactions.
The government is aiming for a fiscal deficit equivalent to 2.1 percent of GDP this year. (Reporting by Chen Aizhu; Editing by Hugh Lawson)